In a recent economic update, Qatar announced a positive foreign merchandise trade balance in December 2023, boasting a surplus of nearly QAR18.7 billion ($5.13 billion). However, a closer examination of the data from the Planning and Statistics Authority shows a nuanced picture, with a notable decrease compared to the same period in 2022 but an encouraging uptick from the previous month.
Monthly gains
The overall surplus of QAR18.7 billion in Qatar’s trade balance represents a 33.7 percent decrease compared to December 2022. Despite this year-on-year dip, the December 2023 figures marked a positive trend with an increase of nearly QAR2 billion or 12 percent compared to November 2023.
Qatar’s trade balance recorded around QAR29.2 billion in goods exports for December, reflecting a 23.7 percent decrease from December 2022 but a commendable 10.2 percent increase from November 2023. Meanwhile, goods imports for December amounted to about QAR10.5 billion, showing a 4.2 percent increase year-on-year and a significant 7 percent monthly increase.
Export breakdown
The year-on-year decrease in total exports for December was primarily attributed to lower exports of petroleum gases and other gaseous hydrocarbons. Hence, they witnessed a substantial drop of 31.1 percent to approximately QAR18.1 billion. Qatar’s trade balance revealed that exports of petroleum oils and crude decreased by 3.4 percent, reaching QAR4.8 billion. Meanwhile, petroleum oils and oils from bituminous minerals, not crude, decreased by 6.1 percent, reaching QAR2.2 billion.
In a noteworthy development, China emerged as the top destination for Qatar’s exports in December 2023. It accounted for nearly QAR5.8 billion or 19.7 percent of the total. India followed closely with almost QAR4.5 billion. Moreover, South Korea secured the third position with about QAR2.9 billion.
Read: Trade volume between UAE, Hong Kong surpassed $16 billion in 2023
Leading imports
The leading imported commodities in Qatar’s trade balance were turbojets, turbo propellers, and other gas turbines and parts, with a 12.3 percent increase to QAR1 billion. Motor cars and other motor vehicles ranked second with QAR500 million, recording an 8.9 percent increase. Meanwhile, electrical apparatus, telephone sets, and parts ranked third with QAR400 million, reflecting a 28.1 percent increase.
Notably, China stood out as the leading country of origin for Qatar’s imports in December 2023, contributing about QAR1.50 billion. The United States followed closely with almost QAR1.45 billion. Meanwhile, Italy secured the third position with a total of QAR1 billion. While the year-on-year decrease raises concerns, the positive monthly trend indicates resilience in Qatar’s trade landscape. Observers are keenly watching how these dynamics might evolve in the coming months, given the volatility in global markets.
For more news on logistics, click here.
